Uno Company sold office equipment with a cost of $44,560 and accumulated depreciation of $40,255 for $6,120.Requireda. What is the book value of the asset at the time of sale?b. What is the amount of gain or loss on the disposal? (Loss amount should be indicated with a minus sign.)c. How would the sale affect net income (increase, decrease, no effect) and by how much?d. How would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect) and by how much?e. How would the event affect the statement of cash flows (inflow, outflow, no effect) and in what section?a Book valueb. Gain (loss) on salec. Net income wouldbyd.Total assets wouldbyе.Cash flow wouldbySection

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Un Company sold office equipment with a cost of $42,880 and accumulated depreciation of $39,583 for $5,010. Required What is the book value of the asset at the time of sale? What is the amount of gain or loss on the disposal? How would the sale affect net income (increase, decrease, no effect) and by how much? How would the sale affect the amount of total assets shown on the balance sheet (increase, decrease, no effect) and by how much? How would the event affect the statement of cash flows (inflow, outflow, no effect) and in what section?
Un Company sold office equipment with a cost of $42,960 and accumulated depreciation of $39,803 for $5,640. a. what is the book value of the asset at the time of sale b, what is the amount of gain/loss on the disposal c. how would the sale affect net income and by how much d. how would the sale affect the amount of total assets shown on the balance sheet e. how would the event affect the statements of cash flows
For accounting purposes, depreciation refers to the process of ________. A. estimating an asset's current market value B. allocating the cost of a plant asset to expense over its useful life C. recording the decline in the market value of an asset to its book value D. determining the selling price of an asset
Profit is earned on sale of asset when a. Sale price is less than Accumulated Depreciation b. Sale price is more than Accumulated Depreciation c. Sale price is more than book value d. Sale price is less than book value
A fixed asset with a cost of $30,192 and accumulated depreciation of $27,172.80 is sold for $5,132.64. What is the amount of the gain or loss on disposal of the fixed asset? a.$2,113.44 loss b.$3,019.20 gain c.$3,019.20 loss d.$2,113.44 gain
Which of the following costs are reported on a company’s income statement and balance sheet? Select one: a. Cost of goods sold; Accumulated depreciation b. Gain on sale of land; Cost of goods sold c. Goodwill; Accounts payable d. Accumulated deprecation; Land
Which of the following is not true in regard to selling fixed assets? a.If the selling price is more than the book value, a gain is recorded. b.The cash receipt is recorded. c.The journal entry is similar to discarding fixed assets. d.Accumulated Depreciation will be credited.
In Able Company’s efforts to estimate a value for Baker Company's goodwill, Able is estimating Baker Company's expected future earnings. Able is using Baker's past earnings to project the future earnings. Which of the following items should be eliminated from Baker's past earnings in order to project future earnings? Extraordinary items Amortization expense for identifiable intangibles a. Yes Nob. Yes Yesc. No Yesd. No No
A fixed asset with a cost of $32,167.00 and accumulated depreciation of $28,950.30 is sold for $5,468.39. What is the amount of the gain or loss on disposal of the fixed asset? Select the correct answer. A. $2,251.69 loss B. $2,251.69 gain C. $3,216.70 gain D. $3,216.70 loss
As generally used in accounting, what is depreciation? a. It is an accounting process which systematically allocates long-lived assets cost to accounting periodsb. It applies only to long-term lived intangible assetsc. It is a process of asset valuationd. It is used to indicate a decline in market value of a long-term lived asset
This are the correction answer for that problem (a) is Depreciation Expense 200,000 (b) is Loss on sale 596,875 how to come up to this answer what is the solution and formula ?
An organisation's asset register shows a carrying amount of $145,600. The non-current asset account in the nominal ledger shows a carrying amount of $135,600. The difference could be due to a disposed asset not having been deducted from the asset register. Which one of the following could represent that asset? A Asset with disposal proceeds of $15,000 and a profit on disposal of $5,000 B Asset with disposal proceeds of $15,000 and a carrying amount of $5,000 C Asset with disposal proceeds of $15,000 and a loss on disposal of $5,000 D Asset with disposal proceeds of $5,000 and a carrying amount of $5,000

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